The last time global sovereign debt reached the level seen today was at the end of the Second World War, and this shaped a generation of economic policymaking. International institutions were transformed, country policies were often draconian and distortive, and many crises ensued. By the early 1970s, when debt fell back to pre-war levels, the world was radically different. It is likely that changes of a similar magnitude—for better or for worse—will play out over the coming decades. This book is an attempt to build some structure around the issues of sovereign debt to help guide economists, practitioners, and policymakers through this complicated, but not intractable, subject. The book brings together some of the world’s leading researchers and specialists in sovereign debt. Such a mix of skills and disciplines allows the cross-pollination of ideas, leading to new perspectives and ensuring that ideas are accessible to readers of all backgrounds. The purpose of this book is not to be an encyclopaedia, where all issues are covered in exhaustive detail, but to ensure that the various sub-disciplines of this vast topic are connected—debt management with debt sustainability; debt reduction policies with crisis prevention policies, sovereign default with the restructuring process; and the history of debt with the current landscape. The aim of this book is to be a foundation text for all those interested in sovereign debt, with a focus on real world examples and issues.
